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Hello, I have a question. Thinking about refinancing.

Current Balance: $57,649.12
Current Rate: 5.25%
FHA Loan
House Purchased: June 2010
P & I : $334.26

What should I do.
  • September 20 2012 - Desoto
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Answers (2)

Most say to refinance if you can save at least 1.5 points. But it also depends on how long you plan to keep the loan.
  • September 21 2012
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Please do not follow any "rules of thumb". The size of the loan and the costs to refinance in your area can have a huge impact.  It's fairly simple--determine these three factors: 1) How much will it cost to refinance?; 2) How much will you save each month?; 3) How long do you expect to stay in the house. 

Then do the math to see how long it will take to recoup your investment.  Often with a loan the size of yours, a refinance doesn't work too well.  Run the numbers with the help of a lender in your area and you will be able to make the right decision. 
  • September 21 2012
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